12 February, 2016

Canada is selling off its gold reserves

Back
in the 1960s, Canada held more than 1,000 tonnes of gold. But it
began steadily selling off its hoard, and by 2003, the country had
just 3.4 tonnes. Now, Canada has less than one tonne. (CBC News –
a division of the Canadian Broadcasting Corporation)

Contrary to the recent “Pet
Rock” theories, gold is perhaps the most liquid asset in the world
next to Treasuries. When an entity is reduced to selling assets
as a last resort like this, it’s analogous to a household having to
burn its furniture in the winter in order to heat the house.

Somewhat reminds me of when the
Bank of England dumped half of its gold reserves at the bottom of the
1981 – 2000 gold bear market, marking the beginning the current
secular bull market in precious metals.